C1 Bank in Florida, formerly called Community Bank, hopes people with the means to lay down a $1 million certificate of deposit will find it’s latest offer enticing enough to put forward the cash — a new Mercedes-Benz.
While that might have some people phoning accountants, there are a few catches to the deal. First, the choices are restricted to models ranging around $60,00. That means an SLK 350, E350 sedan, ML350, or E350 convertible. Those cars are available as an immediate incentive in lieu of the normal interest payments associated with a CD.
The newly-hatched plan functions as n incentive because people willing to buy the CD are rewarded right away. It makes sense for people who were already going to buy a new luxury car priced around the same as those listed above and who can afford to tie the million up for five years. An amount equal to the car’s payments are also seen as taxable income.
Still, it’s an unusual offer and one that some people could benefit from because they will receive the benefit of their deposit immediately rather than waiting as they would with a traditional CD.
[Source: C1 Bank]